Building Wealth Via Buisness ownership

Business ownership is not the primary way that most individuals and families build wealth in America, or in any capitalist economy it’s a route that should not be ignored. Especially since much of the growth in income inequality has been driven by a combination of returns to capital and, at the highest levels, pass-through business income. Although business ownership is clearly driving income generation and wealth accumulation among the top 10% and 1%, it can and should have a role in raising wealth levels in Black societies in America.

America has experienced historic levels of income and wealth inequality. The bottom 50% of the population holds just 2% of the nation’s wealth, a low point not seen since the 1920s.

Among the true crises facing Black communities is widespread household financial insecurity. Black households owned 23.5% of the wealth of white households, which is an amazing wealth gap in wealth equality.

Business ownership can help improve earnings, increase assets, increase net worths, and provide generational wealth. However, the real issue is access to capital, which is significantly more difficult for Black business owners. Blacks are less likely to be approved for small business loans that are vital for the economic development and survival of Black businesses. The wealth gap disadvantages Blacks and their financial prospects, but it also weakens the Black community. Fewer dollars to invest back into the community leads to a lower ability to create jobs, increase wages, and increase values of Black businesses.

Business ownership in America is second only to homeownership as the best source of wealth building, but despite this, Blacks are denied credit more frequently and are charged steeper interest rates.

The pandemic created new challenges for Black business owners but also created more opportunities for starting online businesses and thinking outside of the box. Thousands of Black owned businesses are operating online and generating millions of dollars in revenue, incomes, jobs, and personal wealth.

In terms of banking relationships, there is a real disparity between Black owned businesses and other businesses. The cue isn’t a simple process, as some of these issues are systemic and deep-seated. Understanding the problem is the first step in the right direction, and finding solutions is the second step.

Yenom Emit, Inc dba Greenway Capital Management has taken both steps by partnering with a $2.2 billion direct lender to offer a full spectrum of capital solutions for emerging and expanding businesses. By partnering with this lender Yenom Emit, Inc is able to assist Black owned businesses with accessing capital to start or grow their businesses based solely on their qualifications.

ything that has future value. There is no guarantee values will not go down, but if you diversify your investments and hold for the long-term, you will be better off than you will be if you do not invest. Building personal wealth is process that if done correctly, it works.